How Profitable is Apple?

 It’s amazing to think that Apple is twice as profitable as the second most profitable business in the United States and you can put all its products on the dining room table.
I watched an interview with Warren Buffett last night that was recorded back in March and he was question by Becky Quick from CNBC on whether or not he was worried about the Dow Jones futures being down 818 points. His answer at the time was.

“The question is has the 10 year or 20 year outlook for American business changed in the past 24 or 48 hours.”
At the time it certainly had not but there is no question that unless an effective treatment for COVID-19 can be found some businesses and industries around the world will change forever and therefore it is extremely important when we are buying shares in businesses we give careful consideration to how these businesses may look in 5 or 10 years from now with or without COVID-19.

One thing I am sure of is this… 

  • People will still need to eat (Coles)
  • People will still want to do things around their homes (Bunnings)
  • People will still need office supplies (Officeworks)
  • People will still eat Pizza (Dominos)
  • With a coke (Coca Cola)
  • Or enjoy a glass of wine (Treasury Estate Wines)
  • People will still need to bank (ANZ, Bank of America)
  • More people will be using smart phones (Apple)
  • To look up things (Google)
  • To create online things (Adobe)
  • To write, track and send presentations (Microsoft)
  • And to shop (Amazon)
  • And pay using their credit card (American Express)
  • And yes, in the coming 10 years petrol guzzling cars will still be made (Chevron)
  • But a transition to an eco friendly world will gather pace (Tesla).

Are you getting where I am going with this?


These are the stocks in our Trading Mastery Portfolio that I believe will survive and thrive with or without COVID-19.

You can throw in Costco, Home Depot, Wal Mart & Berkshire Hathaway into this story line as well.

The bottom line is I want to own the “future” and whilst I won’t be right on all of the businesses I buy, I think I will be right on enough that I’ll run the risk with my clients of being very wealthy over time.